I would like assistance in this taxproject. I am to fill out a 1040Schedule C using the attached information. Thank you for your assistance.

I. Title: Preparation of an Individual Income Tax Return II. Introduction: In a prior learning demonstration, you conducted tax research for Jerome Horowitz (Nickname: Jerry), one of the firm's clients for many years. You still work for the same firm and Jerry is one of the firm's clients assigned to you. Having just conducted tax research to answer Jerry's questions and provide him with guidance, you are very familiar with his background and tax issues. Thus, you feel ready to prepare a federal tax return for Jerry and his wife Debra (Debbie). Fortunately, the firm has copies of Jerry Horowitz's tax documents from prior years. This hypothetical tax case has one main activity: 1) Preparing an individual federal income tax return using IRS Form 1040. Throughout this learning demonstration, your professor will play the role of a senior partner in the taxation department with whom you discuss various issues and submit draft documents for approval in advance of communicating with clients. To successfully complete this Learning Demonstration, you must demonstrate your knowledge of and abilities to complete the following goals and competencies: Goal 1: Communication: Learners demonstrate ability to communicate clearly both orally and in writing. o Competencies: ! 1.1 Organize document or presentation clearly in a manner that promotes understanding ! 1.2 Develop coherent paragraphs or points so that each is internally unified and so that each functions as part of the whole document or presentation ! 1.3 Provide sufficient, correctly cited support that substantiates the writer's ideas ! 1.4 Tailor communications to the audience ! 1.5 Use sentence structure appropriate to the task, message and audience ! 1.6 Follow conventions of Standard Written English Goal 2: Critical Thinking: Learners demonstrate ability to apply logical, systematic decision-making processes to formulate clear, defensible ideas and to draw ethical conclusions. o Competencies: ! 2.1 Articulate and frame the issue ! 2.2 Collect and evaluate information ! 2.3 Evaluate the underlying causes or conditions of elements contributing to an issue 1 ! ! 2.4 Use systems thinking to arrive at a decision in the context of an issue 2.5 Apply ethical principles when determining actions. Goal 3: Quantitative Reasoning: Learners demonstrate the ability to use mathematical operations and analytical concepts and operations to address problems and to inform decision-making o Competency ! 3.1 Construct models that represent real-world problems or processes ! 3.2 Develop visible representation of data ! 3.3 Analyze data using mathematical/algebraic operations ! 3.4 Use calculated results to inform the problem or process Goal 4: Leadership, Facilitation, and Collaboration: Learners lead, facilitate, and collaborate with a variety of individuals and diverse teams to achieve organizational objectives. o Competency ! 4.1 Demonstrate an ability to plan a particular objective or goal Goal 8: Technical Competencies in Federal Taxation of Individuals, Partnerships, Corporations, and Other Entities: learners demonstrate an applied understanding of tax accounting and federal taxation law by conducting tax research, preparing individual and corporate tax returns, and simulating tax audits. Learners apply competencies via contextualized learning demonstrations to perform authentic professional tasks in federal income taxation. o Competency ! 8.1 Legal and regulatory: Students demonstrate a general understanding of the Internal Revenue Code. ! 8.2 Professional research: learners demonstrate an applied understanding of how to conduct taxation research based on statutory, regulatory, and common-law rules. ! 8.3 Measurement and reporting: learners demonstrate an applied understanding of applicable income taxation laws to prepare tax returns for individuals, corporations, and or other entities. ! 8.4 Decision Making: Apply tax laws, regulations, and court cases to individual situations, identifying and communicating planning opportunities and compliance needs. If you feel the need to refresh your memory regarding Jerry, Debbie, and her two children, please review the Tax Research learning demonstration completed earlier in the semester. 2 III. Steps to Completion 1. Prepare Form 1040 After careful consideration based on your tax advice regarding filing status, Jerry and Debbie decided to use the filing status married filing jointly. Use the feedback you received from the senior partner, final guidance you provided Jerry, and information in Appendices A through G to prepare Form 1040 for Jerry and Debbie Horowitz. Do not prepare a state tax return. You may use forms found on the IRS Website: http://apps.irs.gov/app/picklist/list/formsInstructions.html IV. Deliverables Format: You will combine all files into one PDF document. If you are unfamiliar with combining multiple documents to create one PDF file, the following site explains how using 16 different methods: http://www.wikihow.com/Merge-PDF-Files. Naming convention: Name the PDF file using the following convention: FirstName_LastName_Form1040.pdf LEO Assignment folder: Submit the PDF document in your LEO assignment folder. Form 1040: Married Filing Jointly 1. Individual tax return assuming Jerry and Debbie chose the filing status, Married Filing Jointly, including: a. Form 1040, pages 1 and 2 b. Schedule A c. Schedule B d. Schedule C (2 pages) e. Schedule D (2 pages) f. Schedule SE 3 List of Appendices: ! Appendix A: Jerry, Debbie, Sally, and Sam's Personal information ! Appendix B: List of forms and documents Jerry dropped off in a shoebox ! Appendix C: Debbie's earnings and other tax issues ! Appendix D: Financial information for Jerry's Jiant Jumps Company ! Appendix E: Cancelled checks ! Appendix F: Tax documents ! Appendix G: Invoices and receipts 4 Appendix A: Jerry, Debbie, Sally, and Sam's Personal information Name Social Security Number Date of Birth Address Telephone number Healthcare insurance Name Social Security Number Date of Birth Telephone number Address Healthcare insurance Name Social Security Number Date of Birth Telephone number Address Healthcare insurance Name Social Security Number Date of Birth Telephone number Address Healthcare insurance Jerome Horowitz 100-00-0001 April 2, 1965 100 Lawrence Way Pikesville, MD 21208 240-000-0000 Covered by his employer's medical insurance plan. Debra Francois-Horowitz 100-00-0002 July 6, 1975 240-000-0000 100 Lawrence Way Pikesville, MD 21208 Covered by her husband's medical insurance plan. Sally Draper 100-00-0003 June 2, 1999 410-000-0000 112 Windward Way Annapolis, MD 21401 Covered by her father's insurance plan. Samuel Draper 100-00-0004 January 8, 2001 410-000-0000 112 Windward Way Annapolis, MD 21401 Covered by his father's insurance plan. 5 Appendix B: List of forms and documents Jerry dropped off in a shoebox Form / Source Document W-2 W-2 From Wages from managing short term rentals for JPM Real Estate Company, Inc. Maryland income taxes withheld Amount $300,000 16,800 1099-INT Interest Citibank personal checking account 2,450 1099-INT Interest received on Maryland State Municipal Bonds 1,875 1099-DIV Qualified dividends from various investments 36,250 Sales Tax (Jerry didn't keep receipts for purchases, this is his best guess) 10,485 Property taxes paid 12,650 None Real Property Tax Bill Form 1098 Home mortgage interest paid Thank you card Charitable donation to Red Cross in cash CPA Firm Invoice Cancelled check Tax preparation fees Cancelled check Cost to join Weight Watchers to maintain overall health Estimated federal tax payment to the IRS 8,265 12,600 2,000 $50,000 2,600 Receipt Dog Groomer 1099-B Purchased 200 shares of Comcast Stock on 2/15/20Y1 50,000 1099-B Sold 200 shares of Comcast Corp Stock on 4/15/20Y5 15,000 Jerry's Jiant Jumps Income Statement Net Income from Jerry's Jiant Jumps Company (Sole proprietorship) 165 330,000 6 Appendix C: Debbie's earnings and other tax issues Debbie has two children named Sally and Sam from her marriage to Donald. Sally and Sam lived with Debbie the first six months and her dad, Donald Draper for last six months of 20Y5. Debbie paid over 50% of the support for Sally and Sam. Debbie is a homemaker who earned no income in 20Y5 other than annual alimony payments of $120,000 and child support payments of $70,000. In 20Y5, Debbie received the following from a property settlement associated with her divorce decree: Beverly Hills mansion Bentley coupe Home furnishings $ 5,750,000 $ 200,000 $ 800,000 7 Appendix D: Financial information for Jerry's Jiant Jumps Company Jerry's Jiant Jumps Company is a sole proprietorship with the following Income Statement for 20Y5. Jerry's Jiant Jumps Company Income Statement For the Year Ending Dec. 31, 20Y5 Revenue: Jumping fees earned Total Revenue Operating Expenses: Advertising Rent on land Insurance Office expenses Non-employee compensation Supplies Total Expenses Net Income $ 622,000 $ $ 622,000 $ $ 292,000 330,000 14,100 36,000 60,000 6,900 125,000 50,000 8 Appendix E: Cancelled checks 9 Appendix F: Tax documents 10 11 12 13 14 Appendix G: Invoices and receipts 15 To: Debbie Horowitz Thank you for your generous cash donation of $12,600 on December 20, 20Y5. Your donation will be used to help millions around the world. We look forward to another generous donation from you at next year's Annual Philanthropists Gala. 16